[OR] [BSN] [E2] [C15] Introducing Cultural Change Management

Chapter 15

 Introduce Cultural Change Management – Stage 1 of the Sustain Phase of BSN’s Operational Resilience Planning Methodology

Introduction

Cultural Change Management is a critical enabler in sustaining operational resilience at Bank Simpanan Nasional (BSN).

It involves shifting mindsets, embedding resilient behaviours, and aligning every level of the organisation—from leadership to front-line staff—with the values and expectations of a resilient banking institution.

As part of the Sustain phase of the Operational Resilience Planning Methodology, this chapter focuses on building a culture that supports the long-term effectiveness of resilience strategies.

For BSN, whose Critical Business Functions (CBS) include essential public-facing and regulatory services, instilling a culture of resilience is non-negotiable.

From government disbursements (CBS-2) to digital and agent banking (CBS-4 and CBS-6), resilience is not merely technical—it must be cultural.

Purpose of Cultural Change Management in Operational Resilience

Cultural Change Management ensures that resilience is not viewed as a one-off project, but rather as an ongoing, embedded practice.

It cultivates proactive behaviours, enhances adaptability to disruptions, and fosters accountability across all levels of BSN when employees understand why operational resilience matters—and how they contribute.

As a result, they are more likely to act decisively during crises and adopt resilient habits in everyday work.

Implementation Steps and Examples

Step 1: Establish Resilience Champions Across All Business Units

Description: Appoint “Resilience Champions” in each department to lead by example and serve as role models.

Example: In CBS-3 (ATM and Self-Service Infrastructure), appoint senior ATM operations staff as Resilience Champions to reinforce daily checks, coordinate vendor response times, and promote contingency drills. Their presence reinforces that resilience is a shared responsibility, not just an IT or risk function mandate.

Step 2: Integrate Resilience into Daily Practices and KPIs

Description: Embed resilience considerations into operational KPIs, role descriptions, and performance reviews.

Example: In CBS-5 (Loan Disbursement and Repayment), include a KPI for response time during disruptions such as core banking outages or communication failures. This encourages staff to document and refine fallback procedures regularly, ensuring preparedness becomes a routine practice.

Step 3: Develop a Targeted Communication and Awareness Campaign

Description: Use storytelling, visuals, and real incident narratives to communicate the impact of operational resilience and the role staff play.

Example: Share a case study of a recent cyber disruption that affected CBS-4 (myBSN Online and Mobile App). Highlight how digital support teams restored services through a tested recovery plan. Utilise internal newsletters and town halls to share lessons learned and recognise team efforts.

Step 4: Conduct Role-Specific Training and Simulations

Description: Implement periodic resilience training tailored to job functions, supplemented with simulations and scenario walkthroughs.

Example: In CBS-6 (Agent Banking), conduct field-based scenario testing where agents simulate handling a disruption in mobile connectivity or POS failures. Reinforce backup reporting protocols and manual transaction logging during the session.

Step 5: Recognise and Reward Resilient Behaviours

Description: Establish recognition programs that publicly acknowledge teams or individuals demonstrating resilience in action.

Example: If the Treasury team under CBS-7 successfully executes a liquidity transfer workaround during a system failure, feature them in the BSN internal awards for “Resilience in Action.” This creates positive reinforcement.

Step 6: Facilitate Feedback Loops and Two-Way Communication

Description: Set up channels for staff to share insights, suggestions, and pain points related to resilience implementation.

Example: In CBS-9 (Customer Complaint and Dispute Resolution), frontline call centre staff provide feedback on script modifications during digital banking downtime. This input informs process refinement and boosts their sense of ownership.

Step 7: Align Leadership and Governance Structures

Description: Ensure leadership actively supports and models resilient behaviour by participating in reviews, exercises, and awareness efforts.

Example: During quarterly business continuity reviews, the CEO or Head of Operations co-chairs the resilience session for CBS-10 (Regulatory Reporting). This highlights the importance of maintaining data integrity and submitting it in a timely manner, even under adverse conditions.

Challenges in Embedding Cultural Change

• Resistance to Change: Employees may view resilience initiatives as extra work or unrelated to their core roles.
• Siloed Mindsets: Departments may not see how their resilience efforts connect to the broader organisational mission.
• Lack of Reinforcement: Cultural change may fade if not continuously reinforced through effective leadership, transparent processes, and relevant incentives.

These challenges must be mitigated through consistent leadership messaging, reward systems, and transparency in decision-making.

Summing Up ...

For Bank Simpanan Nasional, introducing and embedding Cultural Change Management is essential to sustaining a resilient banking environment.

By operationalising cultural change across all ten Critical Business Services—from Retail Banking to Regulatory Reporting—BSN ensures that resilience is not only a policy but a lived, daily experience.

The strength of BSN’s resilience lies not just in its systems and structures, but in the collective mindset and behaviour of its people.

As BSN progresses in its Operational Resilience journey, Cultural Change Management will be the cornerstone that transforms compliance-driven practices into a deeply ingrained culture of preparedness, agility, and responsiveness.

	Operational Resilience for Financial Services: The BSN Malaysia Approach
	"Sustain" Phase of the Operational Resilience Planning Methodology

OR Planning Methodology Phases		Plan	Implement	Sustain

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